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ABC News’ Lama Hasan and Alyssa Newcomb Report:

The Duke and Duchess of Cambridge will be trading their modest two bedroom London apartment for some more opulent digs, but only after an extreme home makeover.

The new apartment, which hasn’t been lived in since Princess Margaret died in 2002, has no hot water, asbestos in the walls, and decades old electrics. It’s estimated that $1.6 million in renovations will need to be done before it becomes liveable.

But the royals are willing to wait.

Prince William knows the four story, 20 room apartment well — it’s where he was raised by Prince Charles and Princess Diana.

So are the new digs a sign the couple plans to start a family?

”They will need domestic staff and there’s plenty of room to have those and it’s also got a nursery up on the 3rd floor so it’s a ready made family home,” said Katie Nicholl, a royals reporter for The Daily Mail.

Earlier this week, Kate sparked pregnancy rumors after she declined to eat peanut paste while on a humanitarian visit to a United Nations aid depot in Copenhagen.

”Who knows [if she's pregnant]. this is a couple that do things very secretly,” Nicholl said. “The palace isn’t commenting either way, but I suspect this will not be the first or last preg rumor.”

Whenever the time comes, the royal couple can rest assured they will have just the place to raise a future king or queen.